Firstsource Solutions stock jumps 18%; should you 'Buy'? Brokerages share target prices
Global brokerage Nomura maintained its 'Buy' rating on the counter, calling it the "preferred small cap IT/BPO stock."
- May 8, 2026,
- Updated May 8, 2026 12:22 PM IST
Shares of Firstsource Solutions Ltd surged 18.17 per cent in Friday's trade to Rs 278 level. Some brokerages reiterated positive views on the stock following the company's March quarter (Q4 FY26) earnings.
Global brokerage Nomura maintained its 'Buy' rating on the counter, calling it the "preferred small cap IT/BPO stock."
"Firstsource posted revenue growth of 3 per cent QoQ (+11 per cent YoY) in constant currency (cc) terms. Organic growth was ~1.7 per cent QoQ. Growth was driven by the BFS and Healthcare verticals. EBIT margin was 12.2 per cent (+30bp QoQ) vs our expectation of 12 per cent. Reported EPS at Rs 2.9 was +27 per cent YoY," it stated.
Nomura noted that the company has guided for 10-13 per cent YoY revenue growth in FY27E, including an inorganic contribution of 2-2.5 per cent in constant currency terms.
"We tweak FY27-28F EPS by
Domestic brokerage Anand Rathi also retained its 'Buy' rating, citing robust revenue growth and strong deal momentum.
"Deal wins remain strong with 4 large deals in each of the last 5 Qs with deal pipeline now highest ever at $1bn+. FSL is evolving from its 'UnBPO' theme to 'Intelligence that Operates,' as it tries to occupy the white space between AI platform vendors & traditional IT services firms, by embedding deep domain expertise into its agentic systems with outcome accountability in regulated industries," it stated.
Anand Rathi assigned a one-year target price of Rs 315 on the stock.
Separately, Nuvama Institutional Equities upgraded Firstsource following the company's mixed Q4 FY26 performance, while lowering its 12-month target price.
It said Firstsource reported constant currency revenue growth of 3 per cent quarter-on-quarter and 11.6 per cent year-on-year, missing its estimate of 4.1 per cent QoQ growth. EBIT margin stood at 12.2 per cent, up 30 basis points sequentially and broadly in line with estimates.
The domestic brokerage upgraded the stock to 'Buy' while lowering its target price.
"Firstsource's double-digit revenue and strong margin guidance set the platform for a +25 per cent/+20 per cent earnings growth in FY27 and over FY26–28. We are raising FY27E/28E EPS (+3.4 per cent/+3.1 per cent) on higher margins and USDINR (93 versus 88). Upgrade to 'BUY' with a TP of Rs 320 (from Rs 350) valuing it at 20x FY28 PE (earlier 23x). Post-sharp correction, the stock is available at attractive valuations of 18x FY27 PE," Nuvama further stated.
Shares of Firstsource Solutions Ltd surged 18.17 per cent in Friday's trade to Rs 278 level. Some brokerages reiterated positive views on the stock following the company's March quarter (Q4 FY26) earnings.
Global brokerage Nomura maintained its 'Buy' rating on the counter, calling it the "preferred small cap IT/BPO stock."
"Firstsource posted revenue growth of 3 per cent QoQ (+11 per cent YoY) in constant currency (cc) terms. Organic growth was ~1.7 per cent QoQ. Growth was driven by the BFS and Healthcare verticals. EBIT margin was 12.2 per cent (+30bp QoQ) vs our expectation of 12 per cent. Reported EPS at Rs 2.9 was +27 per cent YoY," it stated.
Nomura noted that the company has guided for 10-13 per cent YoY revenue growth in FY27E, including an inorganic contribution of 2-2.5 per cent in constant currency terms.
"We tweak FY27-28F EPS by
Domestic brokerage Anand Rathi also retained its 'Buy' rating, citing robust revenue growth and strong deal momentum.
"Deal wins remain strong with 4 large deals in each of the last 5 Qs with deal pipeline now highest ever at $1bn+. FSL is evolving from its 'UnBPO' theme to 'Intelligence that Operates,' as it tries to occupy the white space between AI platform vendors & traditional IT services firms, by embedding deep domain expertise into its agentic systems with outcome accountability in regulated industries," it stated.
Anand Rathi assigned a one-year target price of Rs 315 on the stock.
Separately, Nuvama Institutional Equities upgraded Firstsource following the company's mixed Q4 FY26 performance, while lowering its 12-month target price.
It said Firstsource reported constant currency revenue growth of 3 per cent quarter-on-quarter and 11.6 per cent year-on-year, missing its estimate of 4.1 per cent QoQ growth. EBIT margin stood at 12.2 per cent, up 30 basis points sequentially and broadly in line with estimates.
The domestic brokerage upgraded the stock to 'Buy' while lowering its target price.
"Firstsource's double-digit revenue and strong margin guidance set the platform for a +25 per cent/+20 per cent earnings growth in FY27 and over FY26–28. We are raising FY27E/28E EPS (+3.4 per cent/+3.1 per cent) on higher margins and USDINR (93 versus 88). Upgrade to 'BUY' with a TP of Rs 320 (from Rs 350) valuing it at 20x FY28 PE (earlier 23x). Post-sharp correction, the stock is available at attractive valuations of 18x FY27 PE," Nuvama further stated.